AlitaliaSseeks Damages From KLM

1 August 2000

At today’s meeting, Alitalia’s Board of Directors acknowledged that the conciliatory procedure between Alitalia and KLM failed to reach a solution and decided to call for an international arbitration as envisaged in the contract illegally cancelled by KLM on 28 April of the current year.

In its request for arbitration, Alitalia confirms the objection to the legitimacy with which the Dutch airline pulled out of the alliance and declares that it refuses to reimburse the contribution of 100 million Euro paid by KLM for the Malpensa hub, while claiming damages incurred.

At present, the damages are estimated at 50 million Euro and triggers the contract penalty of 250 million Euro.